Securing a first time buyer mortgage remains a challenge

With property prices still very high in most of the UK, the challenge to step onto the first rung of the property ladder remains.

Of over 850 aspiring first time buyers visiting FirstRungNow.com for advice on how to do just that, 91% are determined that 2011 will be their year – but they are under no illusion that it will be an easy ride.

Over half of respondents (53%) realise that they will need to compromise on some aspect of the house or flat.

Helen Adams, Eight years founder of first time buyer website FirstRungNow.com comments:

“Making compromises with a first home is not new – this has been the situation for decades. The problem now is that these days first timers have such high expectations. Many are not prepared to buy in undesirable areas or to improve a property, which can take blood sweat and tears. “

When it comes to the finances, there are yet more hurdles. With only one in five first time buyers making a successful mortgage application, first timer buyers’ difficulties with securing a mortgage are now more evident. The survey reveals that 80% expect to need at least 15% deposit and 41% expect to encounter problems with their mortgage application.

Adams continues:

“Against a back-drop of little or no economic growth – indeed a decline - mortgages are unfortunately going to continue to be hard to come by, though kick-starting the property market is one way of breathing life into the economy. It’s clear that this combined with the three main problems of high expectations, not enough deposit and poor credit history are going to continue to make this a difficult year for first time buyers”.